The following diagram shows supply and demand in the market for tablets.Use the black point (plus symbol) to indicate the equilibrium price and quantity of tablets. Then use the green point (triangle symbol) to fill the arearepresenting consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus.?150Demand135Equilibrium120A105Consumer Surplus907560Producer Surplus453015Supply03570105140175210245280315350QUANTITY (Millions of tablets)Total surplus in this market is $millionPRICE (Dollars per tablet)

Question
Asked Oct 6, 2019
The following diagram shows supply and demand in the market for tablets.
Use the black point (plus symbol) to indicate the equilibrium price and quantity of tablets. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus.
The following diagram shows supply and demand in the market for tablets.
Use the black point (plus symbol) to indicate the equilibrium price and quantity of tablets. Then use the green point (triangle symbol) to fill the area
representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus.
?
150
Demand
135
Equilibrium
120
A
105
Consumer Surplus
90
75
60
Producer Surplus
45
30
15
Supply
0
35
70
105
140
175
210
245
280
315
350
QUANTITY (Millions of tablets)
Total surplus in this market is $
million
PRICE (Dollars per tablet)
help_outline

Image Transcriptionclose

The following diagram shows supply and demand in the market for tablets. Use the black point (plus symbol) to indicate the equilibrium price and quantity of tablets. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. ? 150 Demand 135 Equilibrium 120 A 105 Consumer Surplus 90 75 60 Producer Surplus 45 30 15 Supply 0 35 70 105 140 175 210 245 280 315 350 QUANTITY (Millions of tablets) Total surplus in this market is $ million PRICE (Dollars per tablet)

fullscreen
check_circle

Expert Answer

Step 1

Consumer Surplus: It refers to the difference between the maximum price the buyer is willing to pay and the market price of the good. Willingness to pay is presented by the demand curve. So, the area under the demand curve and above market price is considered as consumer surplus.

Producer Surplus: It refers to the difference between minimum price at which producer is willing to sell the good and the price received by producer. Producer’s willingness to sell is represented by supply curve. So, the area between supply curve and price line is considered as producer surplus.

Step 2

The demand and supply curve diagram for the market of tablet is shown below:

Price of tablet (in S)
Supply curve
Consumer
Splus
135
120
90
Equilibrium point
75
60
45
15
Demand curve
Producer
Surplu
Quantity of tablet
20 40 60 80 100 120 140 160
O
help_outline

Image Transcriptionclose

Price of tablet (in S) Supply curve Consumer Splus 135 120 90 Equilibrium point 75 60 45 15 Demand curve Producer Surplu Quantity of tablet 20 40 60 80 100 120 140 160 O

fullscreen
Step 3

Market equilibrium is attained at the intersection of supply and demand curve and in the given mark...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Economics

Other

Related Economics Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: How do environmental regulations impact our economic growth and productivity?

A: Click to see the answer

question_answer

Q: The accompanying graph represents a hypothetical corn market. Suppose a significant number of corn f...

A: Equilibrium point:In economics, the equilibrium point refers to the point of intersection at which d...

question_answer

Q: In December, the price of Christmas trees rises and the quantity of trees sold also rises. Is this a...

A: So, during December, when the price of the Christmas trees would rise, it would not be a violation o...

question_answer

Q: ADVANCED ANALYSIS Apply the formula for the area of a triangle (Area 2 x Base x Height) to answer th...

A: Hello, thanks for the question. Since we only answer up to 3 sub-parts, we’ll answer the first 3. Pl...

question_answer

Q: 1. A factual claim about how the world actually works   a. is a positive statement.   b. cannot be p...

A: Hey, Thank you for the question. According to our policy we can only answer upto 3 MCQs per session....

question_answer

Q: Steve decides not to rent out his second home since he is not allowed to set the rate above $1000 pe...

A: This is an example of price ceiling.

question_answer

Q: The minimum wage hike will mean a spike in unemployment: Study saysBy Jane Stevenson, Toronto Sun, S...

A: (D) The diagram below represents a low skilled labor market where labor is on the x-axis and wages a...

question_answer

Q: I paid $40 a ticket for 4 (non-refundable) tickets to a show that I can't use and can't resell so I'...

A: Surplus refers to the difference between the MWTP and the price of the ticket. When an individual de...

question_answer

Q: Using the following national income accounting data, compute GDP, NDP, and NI. All figures are in bi...

A: The Calculation of GDP is shown below: